Global Statistics Representing Smart Hospitality Management Market Scenario
The incorporation of advanced technologies and IT has been transforming the hospitality industry. Smart hospitality is the process through which hotels have been transforming their infrastructure through the installation of smart solutions to enhance their offerings and offer better and quality services to guests and clients. Smart hospitality management helps improve the operational efficiency of hotels and enhances guest loyalty. The goal of smart hospitality management is personalization of experiences and digitalization of services. The increasing usage of smart and IoT, AI, and voice activation/recognition applications in the hospitality sector, rising demand for real-time optimized guest experience management and lower operational costs are among the key factors driving the growth of the smart hospitality management market.
The incorporation of internet of thing (IoT), AI, and voice activation/recognition in the hospitality industry qualifies hotels as smart buildings, which form a key aspect of smart cities. For instance, a survey conducted by Oracle Corporation “Hotel 2025” estimated that 78% of hotel operators said voice-activated controls for lights, air conditioning, and room devices would be mainstream or in mass adoption by 2025. Further, 59% said using a voice-activated device to control room lighting/temperature would enhance guest experience.
Growing domestic and international tourism is another key factor driving market growth. The Center for Hospitality Research (CHR) estimated that millennials (those ages 18-34) are expected to represent 50% of all travelers to the U.S. by 2025. The smart hospitality management market is expected to grow against the backdrop of early adoption of technology. Revenue generated from accommodation, food and beverage, and other services availed by travelers is propelling the growth of the hospitality industry, and in turn, driving the growth of the smart hospitality management market.
The smart hospitality management market is expected to reach a value of USD 29.11 Billion by 2026, registering a CAGR of 14.4% during the forecast period.
Key Target Audience
The smart hospitality management market has been segmented on the basis of software, services, hotel type, deployment type and geography.
On the basis of software, the market has been segmented into hotel building automation system, hotel operation management system, guest service management system, and integrated security system, wherein the hotel building automation system segment is likely to hold the largest share, backed by the increasing demand for energy and facility-efficient methods in hotel buildings.
On the basis of service, the smart hospitality management market has been segmented into professional and managed services. The managed services segment is expected to grow with the highest CAGR as these services support the implementation of smart hospitality solutions across hotels.
On the basis of deployment model, the smart hospitality management market has been segmented into on-premises and on-demand. The on-demand deployment model is anticipated to grow with the highest CAGR as it helps to reduce the cost associated with purchasing, servicing, and powering server-class machines.
On the basis of hotel type, the market has been segmented into business hotel, resorts & spas, heritage and boutique hotel and others. The business hotel segment is projected to hold the largest market share in the smart hospitality management market, as many business hotels are deploying building automation services and technology-enabled services to offer premium services to their customers.
Geographically, the smart hospitality management market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
North America currently accounts for the largest market share in the smart hospitality management market, with technological advancements and adoption of Internet of Things (IoT) in the hospitality industry. Other advancements such as smartphones, smart appliances, and social media have also been positively impacting the smart hospitality management market.
The Europe smart hospitality management market has been registering significant growth – in both tourism and corporate businesses – with increasing demand for smart hospitality management solutions from hotels for better services. According to the European Union, the total number of tourist arrivals was estimated to be 478,4 million in 2015.
Asia-Pacific has been emerging as an increasingly popular destination for incentive travel with destinations such as Hong Kong and Singapore pursuing this market for the past 20 years in recognition of its high yield (Asian Association of Convention and Visitors Bureaus, 1995). The Philippine Convention and Visitor Corporation estimates that incentive travelers spend, on average, USD 1,200 in the country and stay for 5.6 nights (Asian Association of Convention and Visitors Bureaus, 1995), while incentive travelers spend, on average, about USD 2,500 in Singapore (Mehta, Loh and Mehta, 1991).
The UAE spearheads growth in the smart hospitality market with Dubai and Abu Dhabi accounting for a staggering 110,000 hotel rooms in 2017. The region’s predominance can further be attributed to its novel tourism and hospitality offerings and government initiatives such as Abu Dhabi Vision 2030 and Dubai Plan 2021. In addition, Dubai’s tourists are pegged to nearly double from 14.2 million in 2015 to 25 million in 2020, which is further expected to drive market growth in the coming years.
Siemens AG (Germany), Winhotel Solutions (Spain), Oracle Corporation (U.S BuildingIQ (California, U.S.), Cisco Systems, Inc. (U.S.), Huawei Technologies (China), Infor, Inc. (U.S.), Oracle Corporation (U.S.), NEC Corporation (Japan), Honeywell International (U.S.), IBM Corporation (U.S.), Johnson Controls (U.S.), and Schneider Electric (France) are some of the key players operating in the smart hospitality management market.
Smart Hospitality Management Market Segmentation
By Deployment Model
By Hotel Type
Why Buy This Report?
The hospitality industry is highly competitive, which drives the search for new ways and elements of efficient performance. Advanced technologies such as AI, driverless transportation, and biometrics and facial recognition, which were earlier somewhat restricted to the consumer market, are now making a foray in the hospitality industry.
In March 2018, Schneider Electric, Danfoss and Somfy announced a partnership to develop a Connectivity Ecosystem that aims to accelerate connectivity adoption in residential, mid-size building and hotel markets.
In June 2018, Honeywell launched a suite of next-generation energy management software, voice controls, secure cloud communication systems, and smart lighting at HITEC 2018 in Houston, Texas.
With the help of latest technologies, hoteliers have an opportunity to increase guest satisfaction and their bottom line. With latest innovations in voice and service consolidation entering the mainstream, the hospitality industry is on the verge of a transformation that will fundamentally redefine what it means to offer a truly exceptional guest experience. Moreover, the following sections have been specifically covered in the report.